I'm getting divorced after 15 years, will my wife get a share of my whole pension?

I am getting divorced after 15 years of marriage. Is my wife entitled to a share of my pension which I have paid into all my working life? DB, Devon

Break-up: What happens to my pension savings in divorce?

Linda Mckay of This is Money replies: When a couple separate, whether or not children are involved, they are advised by solicitors to complete a full and frank financial declaration so that matrimonial assets including property, pensions or any other form of savings may be divided.

The proportion of division may well depend on custody and spousal maintenance if there are any children.

I asked our legal experts to give some comment.Family law practitioner Robin Francis of Motley & Hope replies: Personal circumstances vary widely but it is not unusual for a pension to be a couple’s second largest asset after the matrimonial home and the divorce courts can take this into account when deciding how to organise the family finances after a split.

The court may indeed include your pension as an asset to the matrimonial pot, especially if your wife has been out of the working environment bringing up children and therefore not able to contribute to her own pension.

The way the matrimonial pot is divided between you and your wife will be decided by the court and will be based on factors such as the financial needs of each spouse and the children as well as the length of your marriage.

Your age will be a factor to think about in decision-making. In order for your pension rights to remain yours and untouched to draw on later in life you may consider a process called ‘offsetting’ which would involve you transferring a proportionately larger share of your overall liquid assets to your wife now.

Offsetting can be appropriate if a pension is inaccessible, if for example it is based abroad. If you have a large pension fund you are likely to require a significant sum to compensate your wife or you will need to negotiate higher terms on other settlements such as property.

Pension sharing orders where introduced in December 2000, giving the court the ability to split the pension irrevocably at the time of divorce which would then form two separate pots with one being allocated to the former partner.

This option specifies the percentage value to be transferred and can also apply to a pension that is already being drawn. But this can be a costly and complex process which requires actuarial calculation.

Another option for the court is a pension attachment order, where a proportion of your pension is marked for your wife. When the pension becomes payable the pension trustee would then pay part of it and any lump sum available to your then ex-wife. This entitlement would terminate if your wife should die or remarry.

The main advantage of a pension attachment order is that the payment is more likely to represent the value of the pension at the time it becomes payable but it does have a number of drawbacks.

There is no clean break in terms of financial settlement and, after a divorce, a court cannot force the paying spouse to continue with contributions or work until a specific age. A pension value is also difficult to predict and there is the insecurity that if the paying spouse dies the order is terminated.

Offsetting is the most popular remedy for what is already for many a difficult, emotional and stressful time.